{"id":8136,"date":"2023-08-24T16:16:43","date_gmt":"2023-08-24T08:16:43","guid":{"rendered":"https:\/\/malayacorporate.com\/?post_type=article&p=8136"},"modified":"2023-09-07T11:17:21","modified_gmt":"2023-09-07T03:17:21","slug":"private-exempt-company","status":"publish","type":"article","link":"https:\/\/malayacorporate.com\/my\/article\/private-exempt-company\/","title":{"rendered":"PRIVATE EXEMPTED COMPANY"},"content":{"rendered":"
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t\t
<\/div>\n\t\t\t\t\t\t
\n\t\t\t\n\t\n<\/svg>\n\t\t<\/div>\n\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

EXEMPT PRIVATE COMPANY<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Oleh AZIZAM AZIZAN<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t
<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

The Basics of Private Exempt Companies <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

In the realm of business and commerce, the concept of an Exempt Private Company (EPC) <\/span><\/span>
stands as a unique and strategic structure that extends distinct advantages to certain <\/span><\/span>
enterprises. Rooted in company law, the notion of an EPC revolves around a set of criteria <\/span><\/span>
that, once met, opens the door to a range of benefits tailored for specific business <\/span><\/span>
circumstances. <\/span>By <\/span>offering <\/span>reduced <\/span>regulatory <\/span>obligations <\/span>Dan <\/span>financial <\/span>reportin<\/span><\/span>g <\/span><\/span>
requirements<\/span><\/span>. <\/span><\/span>This article delves into the fundamental aspects of Exempt Private Companies, <\/span><\/span>
shedding light on their qualifications, advantages, and the broader implications they hold within <\/span><\/span>
the modern business landscape.<\/span><\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Advantages \u2018Exempt Private Company\u2019 status <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

EPCs enjoy significant advantages under the <\/span><\/span> CA2016. They are exempt from the obligation <\/span><\/span>to file comprehensive financial statements and reports with the ROC. Instead, EPCs only need <\/span><\/span>
to submit two items to t<\/span><\/span>he ROC, <\/span><\/span>a certificate signed by the company’s directors confirming its <\/span><\/span>
EPC <\/span>status <\/span>Dan <\/span>an <\/span>audito<\/span><\/span>r’s <\/span>statement <\/span>affirming <\/span>that <\/span>the <\/span>company <\/span>maintains <\/span>proper <\/span><\/span>
accounting records and appears capable of meeting its liabilities as they come due.<\/span><\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Audit Exemption<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
Sections 260 and 261 of the CA2016, previously known as section 165A of the Companies <\/span><\/span>
Act 1965, elaborate on the concept of audit exemption. While generally, all companies must <\/span><\/span>
prepare and have their financial statements audited, the Registrar of Companies<\/span><\/span> <\/span> has the <\/span><\/span>authority to exempt specific categories of private companies from this requirement. The<\/span><\/div><\/div>
following categories are exempted from the audit obligation:<\/span><\/span> <\/span><\/span>
a. Dormant companies<\/span><\/span>: Companies that are not actively engaged in business operations.<\/span><\/span> <\/span><\/span>
b. Zero<\/span><\/span>–<\/span><\/span>Reve<\/span><\/span>nue companies<\/span><\/span>: Companies that generate no revenue.<\/span><\/span> <\/span><\/span>
c. Threshold<\/span><\/span>–<\/span><\/span>Qualified companies<\/span><\/span>: Private companies that meet specific criteria set by the <\/span><\/span>
Registrar.<\/span><\/span><\/span><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Compliance and Obligations<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Although <\/span><\/span>certain private companies are exempt from undergoing an audit, <\/span><\/span>they are still legally <\/span><\/span>
obligated <\/span>to <\/span>maintain proper <\/span>accounting <\/span>records <\/span>and prepare financial <\/span>statements <\/span>as <\/span><\/span>
mandated by the Companies Act 2016<\/span><\/span> <\/span> and lodge financial statements with the Registrar. <\/span><\/span>
These statements must adhere to approved accounting standards. The absence of an audit <\/span><\/span>
should not compromise the accuracy and reliability of financial statements. The Companies <\/span><\/span>
Act 2016 underlines the imp<\/span><\/span>ortance of maintaining the integrity of financial reporting.<\/span><\/span> <\/span> This <\/span><\/span>
requirement <\/span>applies <\/span>universally, <\/span>regardless <\/span>of <\/span>whether <\/span>a <\/span>company <\/span>qualifies <\/span>for <\/span>audit <\/span><\/span>
exemption or not.<\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Legal Consequences of Fraudulent Reporting<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

It is essential to note that intentionally <\/span><\/span>submitting fraudulent financial statements is a serious <\/span><\/span>
offense under section 593 of the Companies Act 2016. Companies and directors found guilty <\/span><\/span>
of lodging false or misleading statements with the Registrar can face prosecution.\u00a0<\/span><\/span><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false,"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}}},"class_list":["post-8136","article","type-article","status-publish","hentry"],"acf":[],"yoast_head":"\nPRIVATE EXEMPTED COMPANY -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/malayacorporate.com\/my\/article\/private-exempt-company\/\" \/>\n<meta property=\"og:locale\" content=\"ms_MY\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PRIVATE EXEMPTED COMPANY -\" \/>\n<meta property=\"og:description\" content=\"EXEMPT PRIVATE COMPANY By AZIZAM AZIZAN The Basics of Private Exempt Companies In the realm of business and commerce, the concept of an Exempt Private Company (EPC) stands as a unique and strategic structure that extends distinct advantages to certain enterprises. Rooted in company law, the notion of an EPC revolves around a set of […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/malayacorporate.com\/my\/article\/private-exempt-company\/\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-07T03:17:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/malayacorporate.com\/wp-content\/uploads\/2020\/03\/85097308_10220866490749244_3425151885013680128_o-1.jpg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minit\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/\",\"url\":\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/\",\"name\":\"PRIVATE EXEMPTED COMPANY -\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/my\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/malayacorporate.com\\\/wp-content\\\/uploads\\\/2020\\\/03\\\/85097308_10220866490749244_3425151885013680128_o-1.jpg\",\"datePublished\":\"2023-08-24T08:16:43+00:00\",\"dateModified\":\"2023-09-07T03:17:21+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/#breadcrumb\"},\"inLanguage\":\"ms-MY\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"ms-MY\",\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/#primaryimage\",\"url\":\"https:\\\/\\\/malayacorporate.com\\\/wp-content\\\/uploads\\\/2020\\\/03\\\/85097308_10220866490749244_3425151885013680128_o-1.jpg\",\"contentUrl\":\"https:\\\/\\\/malayacorporate.com\\\/wp-content\\\/uploads\\\/2020\\\/03\\\/85097308_10220866490749244_3425151885013680128_o-1.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/article\\\/private-exempt-company\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/malayacorporate.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"PRIVATE EXEMPTED COMPANY\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/malayacorporate.com\\\/my\\\/#website\",\"url\":\"https:\\\/\\\/malayacorporate.com\\\/my\\\/\",\"name\":\"\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/malayacorporate.com\\\/my\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"ms-MY\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"PRIVATE EXEMPTED COMPANY -","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/malayacorporate.com\/my\/article\/private-exempt-company\/","og_locale":"ms_MY","og_type":"article","og_title":"PRIVATE EXEMPTED COMPANY -","og_description":"EXEMPT PRIVATE COMPANY By AZIZAM AZIZAN The Basics of Private Exempt Companies In the realm of business and commerce, the concept of an Exempt Private Company (EPC) stands as a unique and strategic structure that extends distinct advantages to certain enterprises. Rooted in company law, the notion of an EPC revolves around a set of […]","og_url":"https:\/\/malayacorporate.com\/my\/article\/private-exempt-company\/","article_modified_time":"2023-09-07T03:17:21+00:00","og_image":[{"url":"https:\/\/malayacorporate.com\/wp-content\/uploads\/2020\/03\/85097308_10220866490749244_3425151885013680128_o-1.jpg","type":"","width":"","height":""}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minit"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/malayacorporate.com\/article\/private-exempt-company\/","url":"https:\/\/malayacorporate.com\/article\/private-exempt-company\/","name":"PRIVATE EXEMPTED COMPANY -","isPartOf":{"@id":"https:\/\/malayacorporate.com\/my\/#website"},"primaryImageOfPage":{"@id":"https:\/\/malayacorporate.com\/article\/private-exempt-company\/#primaryimage"},"image":{"@id":"https:\/\/malayacorporate.com\/article\/private-exempt-company\/#primaryimage"},"thumbnailUrl":"https:\/\/malayacorporate.com\/wp-content\/uploads\/2020\/03\/85097308_10220866490749244_3425151885013680128_o-1.jpg","datePublished":"2023-08-24T08:16:43+00:00","dateModified":"2023-09-07T03:17:21+00:00","breadcrumb":{"@id":"https:\/\/malayacorporate.com\/article\/private-exempt-company\/#breadcrumb"},"inLanguage":"ms-MY","potentialAction":[{"@type":"ReadAction","target":["https:\/\/malayacorporate.com\/article\/private-exempt-company\/"]}]},{"@type":"ImageObject","inLanguage":"ms-MY","@id":"https:\/\/malayacorporate.com\/article\/private-exempt-company\/#primaryimage","url":"https:\/\/malayacorporate.com\/wp-content\/uploads\/2020\/03\/85097308_10220866490749244_3425151885013680128_o-1.jpg","contentUrl":"https:\/\/malayacorporate.com\/wp-content\/uploads\/2020\/03\/85097308_10220866490749244_3425151885013680128_o-1.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/malayacorporate.com\/article\/private-exempt-company\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/malayacorporate.com\/"},{"@type":"ListItem","position":2,"name":"PRIVATE EXEMPTED COMPANY"}]},{"@type":"WebSite","@id":"https:\/\/malayacorporate.com\/my\/#website","url":"https:\/\/malayacorporate.com\/my\/","name":"","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/malayacorporate.com\/my\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"ms-MY"}]}},"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/malayacorporate.com\/my\/wp-json\/wp\/v2\/article\/8136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malayacorporate.com\/my\/wp-json\/wp\/v2\/article"}],"about":[{"href":"https:\/\/malayacorporate.com\/my\/wp-json\/wp\/v2\/types\/article"}],"version-history":[{"count":11,"href":"https:\/\/malayacorporate.com\/my\/wp-json\/wp\/v2\/article\/8136\/revisions"}],"predecessor-version":[{"id":8510,"href":"https:\/\/malayacorporate.com\/my\/wp-json\/wp\/v2\/article\/8136\/revisions\/8510"}],"wp:attachment":[{"href":"https:\/\/malayacorporate.com\/my\/wp-json\/wp\/v2\/media?parent=8136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}